Though, it demands a lot of money!!

But, you must not know the fact that there is a great way to save money on product storage and online store managers’ salaries. Plus, even with a limited budget, you can create the best website and make it successful.

Do you know about the Dropshipping business?

The main idea behind drop shipping websites is that they sell products from other manufacturers. This way, online retailers can focus on attracting and retaining customers while cutting costs.

The online shops with the dropshipping system are very popular among every size of companies. This type of business has many benefits.

Considering dropshipping as your future business model is a win-win situation. Besides, it is important to understand Dropshipping and know how to build one.

What is Dropshipping?

At its most basic, dropshipping is an e-commerce business model that is fairly new for one significant reason; you do not need to keep inventory.

An online store that uses a dropshipping model uses a third-party vendor to fulfil orders from customers. Whenever you make a purchase, the supplier ships the product directly to the buyer’s address.

Thus, you do not need to have a warehouse or deal with collection and packaging. This significantly reduces your operating costs.

A dropshipping sales strategy allows the online business owner to eliminate upfront costs similar to those incurred by retailers who operate storefronts.

In this context, dropshipping is significantly different from traditional retailers and other eCommerce sellers have to deal with it. You only need to create an online presence and create product lists.

Drop Shipping can be a difficult and complicated process to complete. Hence, it is essential to know the pros and cons of Drop Shipping first.

Pros of Drop Shipping

There are many advantages of Drop Shipping. Few of them are defined below:

• You do not have to bother about collecting and maintaining product inventory. Consider acting as an intermediary.
• You ought to zero to the low overhead cost that will eventually save you from handling rent and managing the warehouse.
• By Drop Shipping, you can trade many product types. It enables you to expand your product line or serve a niche market with efficiency by selling everything.
• It could be daunting to send outside of the region or country. It is because of more shipping rates, time limitations, and extra costs. Alternatively, you can partner with other merchants strategically that is more familiar to your audience and can send to your customers’ doorsteps quicker.
• With every benefit, it is seamless for the online store owners to start an eCommerce business in no time. With some upfront cost, you can build your online store and start marketing anywhere your merchants reach.

Cons of Drop Shipping

• While struggling to make your position in the competitive market, you have to reduce the prices to compel the customers. It enables you to sell the services or products at less price. Though, it all relies on the product type that you like to sell.
• It is not easy to get and build a partnership with regular suppliers and attain the best price. You are intended to scan everything completely as the merchant is hidden to the customers. Hence, here, you are liable to deal with ambiguous situations.

How Does Dropshipping Work?

The dropshipping business model is based on three strong players; Dropshipper, Supplier, and Online customer.

In this case, the manufacturer/supplier does the hard work that includes sourcing raw materials, building a product from scratch, delivering ordered products to customers, handling returned items, updating inventory levels, and paying close attention to product quality.

The Dropshipper pays the wholesale price to the supplier and sells it to the online buyer at the retail price.

Since the customer buys the item directly from the dropshipping store, the price metric allows you to maintain an acceptable profit margin per sale.

The smartest Dropshippers adopt a rebranding strategy where the product is packaged using their design and logo. This is a great strategy for gaining a market position as customers recognize your brand.

More and more newbies willing to learn how to start a dropshipping business tend to think so hard about how profitable it is to use this eCommerce business model.

While you do not need to get any shipping or manufacturing costs, all of your profit margins depend on the frequency of purchases of your target audience.

You have to put in a lot of effort to improve the visibility of your online store and build customer confidence in your eCommerce business.

Why Magento for Dropshipping Business?

According to statistics, Magento is the prioritized platform for creating a dropshipping eCommerce store.

One of the advantages of Magento is unlimited personalization options. If you want to impress future buyers, then Magento is worth considering.

The platform has a large community of developers and designers, where you can find answers to your questions. To learn how to use Magento for dropshipping business keep reading this blog.

Magento has several plans, including one free. The rest of the paid plans have all the features you need for big business.

If you are not planning on opening a large online store or trading platform, you can use the free Magento option.

The main causes for picking Magento platform for building a Drop Shipping store over another eCommerce CMS(s) such as BigCommerce or Shopify are:

• No commission Fees charged for each order
• No hidden/extra charges
• Self-hosted data
• No restriction on the number of orders

Manually Drop Shipping the orders

You must be aware of the fact that Magento startup takes only a few orders, hence, you can dropship the orders manually.

It implies that when you need to order from the Magento store, manually, you can send an email to a particular supplier for shipping it to the customers. Here, you can get assistance in trying one or more suppliers.

This strategy assists you in trying new or several suppliers. Now, you do not need to spend much in any sort of technology until you have everything set up adequately. At this time, DropShipping is an ideal solution.

Magento 2 Dropshipping Extensions

Even when the stores cannot manage the orders manually, you can leverage the Magento Drop Shipping Extensions. These extensions enable you to get what your website requirements are.

The extensions assist you in concentrating on the Drop Shipping part of the business and hence, you can save effort and time.

Even though, before finding the Magento 2 Dropshipping extensions, below are some of the essential aspects you need to consider:

• Trusted Source – Assure that you leverage only reliable Magento extensions from the legitimate sources.
• Price – Spend only that amount which is worth paying. Do not forget to compare the pricing and features with different extensions.
• Integrations – Find out if the extension has the safe integration method. It must include the orders on every sales channel.
• Rating/Feedback – Find out the ratings and feedback of the extension from other’s experiences. This way you can have a clear idea of the extension. All this will direct you in the right direction.

Get custom Magento extension development services Now!!

How to Begin a Dropshipping Business with Magento 2?

Step 1: Choose a Supplier

First of all, you have to make a list of the best suppliers.

After knowing the one, you can start the bidirectional synchronization by every Dropshipping platform as enhanced export and improved support with an extensible integration in the single store.

This distinctiveness assures to lock your position from the beginning whereas extra options in the wholesales extensions lessen the percentage of reductions because of the orders of the out of stock items.

Step 2: Get the Suitable Connector

The real connection between dropshipping and Magento 2 is made via enhanced improved import and export jobs. The process is overall simple; get the product information from the Dropshipper side in the store database.

Then, process the order with Magento 2 and cite the order-oriented data to assign it back for better shipping. The software makes third party entities and no supplier, therefore, limiting any database crashes or type of conflicts.

At that time, the built-in mapping tool assures that every transferred information is transferred to the format processed by Magento 2.

Step 3: Encountering a Dropshipping Flow

The cycle of dropshipping in the Magento 2 is effortless: carry out product information from the Drop Shipper side in the store database, carryout order with Magento 2, and extract the order-oriented information to get it back for better shipping.

Enhanced import and export support every type of product to remain flexible with the offers and sell the bundle, configurable, simple, virtual, grouped, and downloadable products.

For sending any of those, you have to choose “Products” as an entity type while importing. The enhanced import and export extension assures to implement them with suitable content without losses or errors.

The overall control on the import procedure enables you to choose whether to include, update, or replace the existing products. Else, eradicate those meetings with the one registered in the data file.

Step 4: Connection Testing

The large diversity in the file formats and data sources supported provides new opportunities to some synchronization you enable.

Create a direct connection among the dropshipping and Magento 2 platforms with REST API or SOAP.

Perceive the details from the dropshipping provider, mention them as the key to an essential API channel while importing, and then send XML data tables to the database easily.

Export the orders in the XML file to give suppliers with essential information via SFTP/FTP. Get the data file ready in the cloud.

Extract the data from Google Sheets or Google drive, Dropbox exactly at the Magento 2 store, or retrieve it directly to the online storage.

Upload the XLSX or CSV file in a manual file. Include the versions in the TAR or ZIP archives or check them open automatically.

Every transferred data goes under the validation process. It is to assure that there is no possible conflict from working in the database.

Before importing, the data mapping can be done for attributes, categories, or attribute values.  This overall functionality changes the import file as per the specified standards.

Build your Dropshipping Store Now!!

Concluding Remarks

Dropshipping is an unusual way in which the online store owners do not keep stock maintenance. But, they send the orders to the merchants who deliver the products to the customers directly.

And, in return, the store owner never maintains the product inventory, however, the delivery is made via them. Drop Shipping can get started easily with and needs less effort and capital.

If you are thinking to start, then, assure us to go through this article and set up a dropshipping business today!!

Hopefully, this article is helpful to you. If you have any doubts or suggestions, then, let us know in the comment section below.

Thanks for reading!!